May 26, 2010 by dan.

John Cook from Tech Flash asked me to comment on the following question:What should Microsoft do to reposition itself as the most dominant and valuable tech company on the planet?

This is not a problem that has appeared over night; it has been decades in the making and can’t be cured with a single act.  The industry has matured, and Microsoft is still run like the company it was 20 years ago.  It lacks the visionary who can anticipate what its customers will desire and the ability to delight and surprise (in a positive way) those customers with a clean and crisp innovation.

Microsoft has become the IBM of the last generation – it is a de facto enterprise solution and “no one will get fired for selecting Microsoft.”  Microsoft had the ability to lead the way in the Internet, but it instead focused on the competition inside and didn’t dream the big dream.  Worse – it became boring!

Look at Windows Vista and Office 2007.  Neither were improvements on previous versions, nor were they more stable or easier to use.  And, of course, Microsoft had the clear shot at the Smartphone operating system.  Instead, it tried to bring us Windows on our phones.

Customers wanted new thinking, sleek products, and ones that were much easier to use.  The iPhone was really a breakthrough – a browser-based phone that was truly useful and enabled 1000’s of cheap, easy, and imaginative apps.  Apple unleashed the imagination and creativity of an entire generation.  And then they extended it to the iPad.  They took leadership of the entire industry.  They earned the mantle.

The fact that a large company loses its ability to innovate is not a surprise.  I call this the  ”$0B Business Problem.”    As an illustration, I was the first GM of the Microsoft Search team.  We had a great plan to lead the search business that would grow to a new $250M business in 3 years. (Any VC would have funded this business; it returned over 50x ROI.)  But we competed for resources with Excel, which needed the same 25 headcount, and had an net present value of $4B.  In that context, my $250M rounded to $0B, and we didn’t get the people.

Microsoft needs to find a way to unleash it’s innovation.  It needs to behave more like  a startup.  When I was there, I suggested Microsoft form a group called “The Idea Factory,” where innovative and entrepreneurial employees could “spin in” (rather than spin out) a new idea, and create a startup around that idea.  The notion was that an internal VC group would vet and fund a portfolio of ideas, in exchange for ownership in the new company(newco)  and a right to acquire the entire company at a later date at a market price.  The employees who transferred to newco would exchange their options/restricted shares for newco stock.   And the newco would hire a great startup CEO to build the company.  These newcos shouldn’t be constrained to “work within the existing system,” or you will get another Windows Mobile instead of an iPhone.

Changing leadership at Microsoft, but keeping the system, won’t change the company’s trajectory.  Acquiring a large and already successful company won’t solve the problem.  Nor will decreeing that it is going to “kill Google,” or “kill iPhone.”  Microsoft still has the most formidable research and intellectual ability in the industry.  Microsoft needs a better vision, one that is tied to delighting customers.  Technology that is easier to use and just works.  And technology that surprises it customers.  If Microsoft can’t make this transition, it risks becoming irrelevant in the industry. That would be sad.

Posted in Apple, Strategy, Microsoft | 1 Comment »

May 6, 2010 by dan.

The battle between Apple and Adobe is ridiculous. Ok.. it makes sense if you like to watch two large sumo wrestlers belly bump, ignoring customers and wanting to try to force the market to adopt their products, despite what the market wants. Let’s look at this more carefully.

First of all, many web pages (especially the most interesting ones) use Adobe Flash. I really like those pages.

Secondly, Apple won’t let anyone deploy Flash on its iPad or Safari browser, denying their customers the ability to see those pages. (Remind anyone of the worst of the Microsoft behavior that the government sued them for?)

Third, Apple has alternative technologies that it says are better, use less power, and are optimized to their devices. This is, in some ways, true. But it is also irrelevant. Apple should not make this choice for their customers – it should allow customers to discover it for themselves. A great example of why this is true is the Netflix app on the iPad – I love this app. The quality is great, it doesn’t drain the battery, and the image quality seems better than I get by streaming Netflix to my HD projector. This is a great example of the quality of the Apple technology. If it performs that well on the iPad, it should win in the marketplace. But I hate being told that I must use it.

Lastly, the real reason for this decision was made evident when Apple banned the use of applications that otherwise complied with their standards, but were written on Adobe software.

So.. Steve Jobs please let us see Flash web pages. You have created great technology and products. The iPhone and IPad are transformative. You don’t need to force your customers to use your technology. If you keep innovating, your customers will decide to use what you produce. Use your market leadership with confidence. Win by being better. Don’t emulate the worst behavior; emulate the best.

Posted in iPad, Apple | No Comments »

April 9, 2010 by dan.

Yes, I bought an iPad last Saturday. For those that know me, you will be surprised to know that I even waited in line for almost 2 hours. But I must say, Apple really had its act together. They had the line snake down a service corridor, so that you couldn’t see it when you came in. And then they had coffee at the end of the line. Very civilized. When I got to the front, I was assigned to an Apple employee, who introduced himself, took be in and got me my iPad. He then told me about the accessories that they had in stock, and tested my iPad for me to ensure it worked. I also bought the dock that enable you to charge the iPad while it stands up and the Apple cover. Unfortunately, the you can’t dock the car with the cover on, so I took it off. There seem to be many better covers than the Apple one.

Immediately on leaving, I went to Starbucks to try it out. (OK, maybe to show it off a little.) The screen was brilliant, the package exactly what you’d expect from an Apple product, and the fit and finish terrific. However, the extra size made the touchscreen keyboard very difficult to use, compared to the iPhone. I suppose that I will find a comfortable way to type on it eventually.

It connected to the wifi on the first try. (I wish my Windows laptops did as well.) I then connected it to my exchange server, which also worked on first try. After a brief wait while it downloaded, I had my email, calendar, and contacts. First observation – Apple modified their email, calendar, and contacts programs for the iPad to take advantage of the extra screen space. Really nicely done.

Next, I downloaded the Kindle reader. It immediately synced to my Kindle account and downloaded my books, and even synced to the current page in the book I was reading. Really slick.

I searched for apps in the App Store. Some very cool apps made just for the iPad. One of my very favorite is the Netflix app. It allows you to actually stream and watch movies in your queue! And crystal clear picture, no skips, and good sound. I’ve been using it frequently.

The ABC app, NY Times, and BBC are also really good. The apps made for the iPad that take advantage of the platform really show it off well.

One other cool feature is the photo show button on the sleep screen. When you press it, the iPad becomes a picture show while charging. Very cool.

My iPhone apps also work (for the most part) on the iPad. Apple added a “2X” button at the bottom of the screen so that you can double the size of the iPhone screen. Note that it doesn’t double resolution, but that’s not too bad in most apps. Note that iTunes won’t download apps that don’t work on the iPad.

One big problem was getting files onto the iPad. The only way I found was using iTunes – clearly sub-optimal. Till a friend (who had been an iPad beta tester) told me about GoodReader. Allows you to use wifi to transfer files. Works well.

Another big gripe from me – the iPad has NO CAMERA. Why? I hadn’t thought much about the implications of this, but it not only means that the iPad won’t take pictures, but also can’t use the camera-enabled apps. One of my favorite iPhone apps is WorldCard, which lets you photograph a business card, recognizes it, and then exports it Outlook. I have lots of photo apps on the iPhone and wish they worked on iPad.

Another problem is Apple’s stupid decision not to support Flash. With the fabulous screen and wifi, it is possible to pull up full size web pages, many of which now use flash. They just don’t play/display on the iPad. Note to Apple – please support Flash!

Last gripe – the only other attachment was a VGA adapter, which can show the iPad screen on a monitor. Why not HDMI, so that you get sound as well as the video?

Not perfect, but a very cool product. I can see the value of the 3G version. Hopefully it will do text messaging as well. And maybe version 2 or 3 will fix some of the shortcomings.

Posted in iPad, Apple | 3 Comments »